The People Side of Year End

October 27, 2022 by Holly Connolly
Outsourced Accounting and Advisory Services

Let’s face it.  The months of November and December go by pretty quick with the holidays, vacations, and the annual cadences and deadlines that come with closing out a calendar year.  Don’t forget about the following five items to ensure your employees are ready to take on 2023 with zeal:

Review 2022 payroll and benefits.

Make sure that all payroll issues and corrections have been addressed prior to December if possible.  Don’t forget to add in any taxable fringe benefits such as personal use of company auto or medical insurance for S-Corp shareholders.  If you offer tuition reimbursement, life insurance, or pay year-end bonuses, make sure these are properly accounted for on your employees’ W-2s.    

Discuss year-end incentives.

Start discussions now regarding profit-sharing contributions and year-end bonus amounts and look for non-traditional ways to reward employees and promote employee engagement.  Is it possible to close your doors between Christmas and New Year’s Day?  Is there company swag to deliver that may leave your employees looking and feeling good? Can you plan an event to benefit your company’s favorite charity as a team building event? 

Discuss 2023 pay adjustments.

Consider how you are going to retain your existing staff and what it’s going to take to recruit future leaders. Increases in the cost of living along with a tight labor market necessitate consideration of payroll changes in your 2023 Plan.  In addition to a pay and benefits review, determine if workload can be shifted to provide grown opportunities for your employees. Look for professional development courses or industry conferences in the new year to assist in getting 2023 off to a great start.

Give proper recognition and celebrate your accomplishments.

Employees desire to be recognized for the value they bring. Give timely feedback and specific evidence so your employees know they are a valued member of your team.  Consider sharing some highlights and obstacles from the Year at an in-person or virtual All-Hands meeting.  365 days is a long time and employees forget how they rallied together to save an order or how they won that RFP back in February which bank-rolled your company for months.

Refocus on your Mission, Vision, and Values.

As widely publicized, REI, the outdoor retailer, is now permanently closed on Black Friday as part of their #OptOutside movement. This shift to an ongoing, permanent, employee benefit, is a way to keep their Mission front and center.

By focusing on these items now, your employees will enter the New Year feeling taken care of, valued, and with an understanding of where your Company is headed.